The coronavirus pandemic has disrupted maintenance for the oil and gas companies across the globe, analysts said, adding more pain to the industry already suffering from persistently low oil prices. The disease has prevented maintenance workers from doing their jobs while snarling the supply of spare parts. Wells, pipelines, and refineries need regular repairs to keep functioning.
Risk of unplanned outages or glitches increases without maintenance. Delaying maintenance may force refiners to rush to do the works after the lockdown was lifted, which can incur additional costs. Besides, most of the plants in the northern hemisphere have missed the spring when optimal timing and weather for maintenance occur. At the same time, contractors and service providers have been hit hard by the lack of work.
The pandemic has caused extremely weak demand, which typically creates a chance for companies to conduct maintenance. However, prices also collapsed, forcing firms to slash costs and focus only on essential works. Some producers even shut their units and perform no maintenance, analysts noted.
A major maintenance program in the Sakhalin-2 project in Russia’s Far East is struggling with delays as the company could not receive the pre-ordered pieces of machinery, Reuters reported, citing two sources familiar with the matter. The machinery supplier in China said it could not deliver the order due to the coronavirus outbreak there.
ExxonMobil, which operated the neighbouring Sakhalin-1 project, said it is adjusting the maintenance schedule. The operator said it focused on essential works that can be conducted safely amid the pandemic.
In Italy, the world’s leading valve manufacturer, less than 10% of valve producers have been active, but they are struggling to supply even strategic valves to foreign customers. The country suffered from one of the worst COVID-19 outbreaks globally, and the government allowed factories to resume production just early this month.
